The Bureau of Internal Revenue recently issued Revenue Regulation 32 and 33 to inform all concerned on the extended period to avail of the Tax Amnesty on Delinquencies (TAD) and Voluntary Assessment and Payment Program (VAPP), and clarifications on the availment of the VAPP.
TAD can be availed until June 30, 2021 by those taxpayers with delinquent internal revenue liabilities for taxable year 2017 and prior years.
The period of availment of the VAPP is extended until June 30, 2021, unless further extended by the Secretary of Finance.
Moreover, the following additional clarifications were provided:
1. Taxpayers availing themselves of the VAPP on withholding taxes are allowed to claim deductions on the corresponding income payments.
2. Evidence or findings of under-declaration of sales, receipts or income or overstatement of deductions by more than 30 percent which will invalidate the availment of the VAPP may come from Discrepancy Notice and other third-party information documents.
3. No denial of application or invalidation of a previously issued Certificate of Availment shall be valid unless the taxpayer is formally notified, stating the factual facts therefore. The denial can be appealed to the assistant commissioner – Large Taxpayer Service or Regional Director within 30 days from receipt of such notice.
Please be guided accordingly.
P&A Grant Thornton
Certified Public Accountants
As published in SunStar Cebu, dated 06 January 2021